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R&D-Agent-Quant: A Multi-Agent Framework for Data-Centric Factors and Model Joint Optimization

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  • Yuante Li
  • Xu Yang
  • Xiao Yang
  • Minrui Xu
  • Xisen Wang
  • Weiqing Liu
  • Jiang Bian

Abstract

Financial markets pose fundamental challenges for asset return prediction due to their high dimensionality, non-stationarity, and persistent volatility. Despite advances in large language models and multi-agent systems, current quantitative research pipelines suffer from limited automation, weak interpretability, and fragmented coordination across key components such as factor mining and model innovation. In this paper, we propose R&D-Agent for Quantitative Finance, in short RD-Agent(Q), the first data-centric multi-agent framework designed to automate the full-stack research and development of quantitative strategies via coordinated factor-model co-optimization. RD-Agent(Q) decomposes the quant process into two iterative stages: a Research stage that dynamically sets goal-aligned prompts, formulates hypotheses based on domain priors, and maps them to concrete tasks, and a Development stage that employs a code-generation agent, Co-STEER, to implement task-specific code, which is then executed in real-market backtests. The two stages are connected through a feedback stage that thoroughly evaluates experimental outcomes and informs subsequent iterations, with a multi-armed bandit scheduler for adaptive direction selection. Empirically, RD-Agent(Q) achieves up to 2X higher annualized returns than classical factor libraries using 70% fewer factors, and outperforms state-of-the-art deep time-series models on real markets. Its joint factor-model optimization delivers a strong balance between predictive accuracy and strategy robustness. Our code is available at: https://github.com/microsoft/RD-Agent.

Suggested Citation

  • Yuante Li & Xu Yang & Xiao Yang & Minrui Xu & Xisen Wang & Weiqing Liu & Jiang Bian, 2025. "R&D-Agent-Quant: A Multi-Agent Framework for Data-Centric Factors and Model Joint Optimization," Papers 2505.15155, arXiv.org.
  • Handle: RePEc:arx:papers:2505.15155
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    References listed on IDEAS

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    1. Diebold, Francis X. & Yılmaz, Kamil, 2014. "On the network topology of variance decompositions: Measuring the connectedness of financial firms," Journal of Econometrics, Elsevier, vol. 182(1), pages 119-134.
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